The Multi Commodity Exchange (MCX) opened on Friday with gold futures trading at ₹44, 488 per 10 gram after a fall of ₹391 or 0.87 per cent. Silver futures too traded low at ₹66,620 per kg declining by ₹925 or 1.37 per cent. The exchange was closed in the morning session on Thursday on the occasion of Maha Shivratri.
The prices of the precious metals that have been skyrocketing in 2020 have recorded a fall of more than ₹10,000. Gold in August last year was at ₹56,200 per 10 gram and silver was at ₹77,800 per kg.
In the last session, gold closed at ₹44,879 per 10 gram and silver closed at ₹67,545 per kg.
In the international market too, gold prices retreated after the high-performing US Treasury yields pulled back with a strong dollar. However, the yellow metal was on track for rebounding a weekly gain of 0.4 per cent. Spot gold eased 0.7 per cent to $1,709.46 per ounce. US gold futures plummeted 0.8 per cent to $1,709.10.
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"It's basically a function of elevated yields and although yields aren't marching higher, the problem is they're not going lower, and that presents a problem," Reuters quoted Stephen Innes, chief global market strategist at financial services organization Axi as saying.
{{/usCountry}}"It's basically a function of elevated yields and although yields aren't marching higher, the problem is they're not going lower, and that presents a problem," Reuters quoted Stephen Innes, chief global market strategist at financial services organization Axi as saying.
{{/usCountry}}US President Joe Biden on Thursday signed the $1.9 trillion Covid relief bill translating it into law. With the bill turning into law, the pandemic situation and the market can hopefully return to normalcy by July 4. “The implementation of Biden's pandemic relief bills is stoking fears of a massive supply of bonds hitting the market, as well as rising inflation," Reuters reported an ANZ analysts’ statement.
The analyst, as reported by Reuters, believes that the fast rollout of Covid vaccines and the support of the labour market will diminish support to the safe-haven assets that have been doing well last year due to the uncertainty around the virus and the global economy.